GM Announces $19 Billion Investment in LG Chem for EV Battery Material Sourcing until 2035

General Motors (GM) has announced a $19 billion investment in LG Chem for the sourcing of electric vehicle (EV) battery materials until 2035. This long-term supplier contract will see LG Chem supplying GM with over 500,000 tons of cathode materials, including nickel, cobalt, manganese, and aluminum, which will be used in EV batteries. The supply will be enough to power five million units of EVs with a range of over 300 miles.

The partnership between GM and LG Chem was initially announced in July 2022 but without specific details regarding price or production location. The original agreement was set to expire after 2030, but the latest iteration extends the deal for another five years. This move highlights GM’s commitment to EVs and its efforts to create a strong and sustainable battery EV supply chain.

The deal with LG Chem is likely one of the largest, if not the largest, EV supply deals that GM has signed. This shows that GM is serious about its EV plans and is willing to invest significant resources to ensure a steady supply of critical battery materials. However, the longer contract duration also suggests that GM is adjusting its plans to account for slower EV adoption than previously anticipated.

EV adoption has been slower than expected, and automakers like GM have had to cut costs or delay their plans accordingly. Despite these challenges, GM remains committed to the EV market and sees it as a key part of its future growth strategy. The partnership with LG Chem will help GM meet its fast-growing EV production needs and strengthen its position in the North American market.

This investment in LG Chem also highlights the importance of securing a reliable and sustainable supply chain for EV batteries. The demand for EVs is expected to continue rising, and automakers must ensure they have access to the necessary materials to meet this demand. By partnering with LG Chem, GM is taking proactive steps to secure its supply of cathode materials, which are crucial components of EV batteries.

Overall, GM’s $19 billion investment in LG Chem for EV battery material sourcing until 2035 demonstrates the automaker’s commitment to the EV market. While slower than anticipated adoption has necessitated adjustments in plans, GM is determined to create a strong and sustainable battery EV supply chain. The partnership with LG Chem will provide GM with a reliable source of critical battery materials, enabling it to meet the growing demand for EVs and solidify its position in the North American market.